UK Retailer Faces Supply Chain Issues and Cost of Living Squeeze
- Made.com’s H1 losses widen to £35.3m
- Adjusted EBITDA declines by 32.6% year-on-year
- Revenues grow 4% YoY to £178m
- Stock levels reduced from £63m to £44m
- Initiated strategic review and formal sale process
- Targeted discounting reduces gross margin by 810bps
Made.com has reported a widened loss before tax to £35.3m for the six months to 30 June 2022, down from £10.1m in the same period last year. Adjusted EBITDA declined by 32.6% YoY due to lower consumer demand and increased costs related to handling and clearing excess stock levels and freight cost inflation. Gross Order Values dropped by 19%. However, revenues grew 4% YoY from £171m to £178m as deferred revenue normalized. The company has taken action to reduce inventory levels and control costs, launching a transformation plan to make the business more agile and resilient. A strategic review and formal sale process have been initiated to protect shareholder value.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Made.com’s financial performance, including losses, adjusted EBITDA, revenue growth, stock levels, and actions taken by the company to address challenges. It also includes a quote from the CEO discussing the situation in the retail sector and the company’s position within it.
Noise Level: 2
Noise Justification: The article provides relevant information about Made.com’s financial performance and actions taken by the company to address challenges in the global economy and retail sector. It includes specific numbers and details on losses, revenue growth, and stock levels, as well as a statement from the CEO. The content is focused on the topic and does not contain irrelevant or filler information.
Financial Relevance: Yes
Financial Markets Impacted: Made.com’s stock prices and investor sentiment
Financial Rating Justification: The article discusses Made.com’s financial performance, including losses, adjusted EBITDA, revenues, and actions taken to address challenges in the global economy and retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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